Sometimes you cannot avoid being classified as a commodity. You have built up your value approach, you have developed results producing IP, and you are able to differentiate yourself with others through your track record of astounding achievements.
But the client insists on subjecting you to auctions, demanding you cut price, and giving you a "my way or the highway"approach to terms and conditions.
Some negotiation is inevitable, some flexibility is wise and very practical. But you simply cannot take work at any price.
Once they have knocked you down on price, they become convinced that they got the better deal, and that you were holding out on them. If they hire you through these online auctions such as elance.com and rentacoder.com then you are price based rather than value based.
And if they force unworkable terms and conditions on you then you will not be able to make them work. (Strange that)
Get out. Walk away. Turn to the next option and stop wasting your time, effort and aspirational power with these types of clients. There are planty (PLENTY) of other fish in the sea, and it is their loss not yours.
The problem with competing on price is that you could win... and we all know just how much that hurts.